EghtesadOnline: The average price to earnings ratio of Tehran Stock Exchange-listed companies stood at 10.75 on October 22.

This is while 97 companies at TSE have a P/E ratio of higher than 20, 98 companies were between 10 and 20, 94 were lower than 10, and 36 others in negative territory.

Price-earnings ratio, also known as P/E ratio, measures a company's current share price relative to its per-share earnings. The price-earnings ratio is also known as the price multiple or the earnings multiple.

According to Investopedia, the price-earnings ratio, in essence, indicate the dollar amount an investor can expect to invest in a company to receive one dollar of that company’s earnings, Financial Tribune reported.

In general, a high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E. A low P/E can indicate either that a company may currently be undervalued or that the company is doing exceptionally well relative to its past trends.

It merits mention that earnings per share for 53 companies were more than 10,000 rials ($0.07). The share value of 154 companies is between 3,000-10,000 rials ($0.02-0.07), 1,000-3,000 rials ($0.007-0.02) for 112 companies and lower than 1,000 rials ($0.007) for six companies.

Trade at the Tehran Stock Exchange amounted to more than 5.38 trillion rials ($39.12 million) during the trade week ending October 24 -- a 13% increase compared to the week before. This is while the TSE’s main index witnessed week-on-week decrease of 1,869 points (1%) to 181,060, tse.ir reported.

Trading at TSE starts on Saturday and ends on Wednesday.

Moreover, 13.77 billion securities were traded in more than 1.54 million deals which were up by 2% and down 15% compared to the week before.